Difference between revisions of "Net assets"

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This figure is also equal to the book value of equity, also known as shareholders' funds.
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:<span style="color:#4B0082">'''''Simple example'''''</span>
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:Other assets are 70.
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:Cash is 30.
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: Total assets = Other assets + Cash = 70 + 30
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:Total assets    =        '''100'''
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:Debt is (40)
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:Other liabilities are (10)
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:Total liabilities = Debt + Other liabilities = (40) + (10)
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:Total liabilities  =      '''(50)'''
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:Total assets - Total liabilities = 100 - (50)
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:Net assets      =        '''50'''
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Net assets are also equal to the book value of equity, also known as shareholders' funds.
  
  

Revision as of 14:48, 26 May 2020

Financial reporting.

Net assets are equal to Total assets LESS Total liabilities.


Simple example
Other assets are 70.
Cash is 30.
Total assets = Other assets + Cash = 70 + 30
Total assets = 100


Debt is (40)
Other liabilities are (10)
Total liabilities = Debt + Other liabilities = (40) + (10)
Total liabilities = (50)


Total assets - Total liabilities = 100 - (50)
Net assets = 50


Net assets are also equal to the book value of equity, also known as shareholders' funds.


See also